If the recommendations listed in the final report of a local government funding inquiry are adopted without changes, it could be a significant step towards financial sustainability, Brimbank council has asserted.
These 48 suggestions, if accepted, will go a “long way” to redressing the “imbalance which has left local government strapped for cash and reliant on state funding”, council’s chief executive Fiona Blair said.
Part of the inquiry focused on the effects of cost shifting from the state and federal governments to councils, as well as the overall revenue structure of local governments.
Some areas where the cost has been shifted to council to bear – partly or fully – are school crossing supervisors, libraries, and maternal and child health programs.
With rising costs and rate-capping, local governments’ budgets are shrinking at an alarming rate, Brimbank council said.
The final report tabled in November last year, included a number of recommendations that mirrored the Brimbank council’s submission to the inquiry.
“As a result of the inquiry, the Victorian government is now aware of how the restrictions to revenue and the funding arrangements it has imposed on local governments are not financially sustainable,” Ms Blair said.
“If all the recommendations are adopted without changes, local government will be in a much better position to meet growing community needs and expectations.”
Council’s corporate services director Mark Stoermer said while the recommendations are welcome, the report also calls for further investigation.
“While these processes will take time, there is light at the end of the tunnel,” Mr Stoermer said.
“Some of the recommendations are easily implemented, such as changes to the rate cap and restoring 50-50 funding for libraries and school crossing supervisors.
“Others will require more work, but at least we know we’re heading in the right direction for the benefit of the communities we serve.”
The state government has not responded to the inquiry’s final report yet but a spokesperson said the recommendations listed would be considered in due course.
